contribution margin ratio


contribution margin ratio
= contribution-to-sales ratio; = production–volume ratio; = profit–volume ratio
The ratio of the contribution per product to the sales value, often expressed as a percentage. It is a way of ranking a range of products in terms of their relative profitability, the highest percentage indicating the highest contribution per pound of sales.
See also: limiting factor

Accounting dictionary. 2014.

Look at other dictionaries:

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